Tunisia is overhauling its water system. Spanish companies are set to dominate the sector

In a Mediterranean region undergoing change under the pressure of the climate crisis, population growth and geopolitical competition, Tunisia is emerging as one of the most important infrastructure hubs in the whole of North Africa. This is not only due to its strategic position between Europe and Africa, but above all because the issue of water has now become a matter of national security. From Tunis to Gabès, via Sfax and the Medjerda basin, the country is undergoing one of the most profound overhauls of its water system since independence. Distribution networks suffer from extremely high levels of leakage, reservoirs are affected by evaporation and silting, whilst pressure on groundwater reserves is increasing year on year. For this reason, the Tunisian water sector is becoming a battleground between major international groups, multilateral banks, local operators and new models of public-private partnerships.

The challenge is no longer just about building facilities, but about the integrated management of the entire water cycle: desalination, wastewater reuse, the digitalisation of networks, smart leak monitoring and infrastructure security. At the heart of the system remain two major public bodies: the Société Nationale d’Exploitation et de Distribution des Eaux (SONEDE), responsible for water distribution, and the Office National de l’Assainissement (ONAS), which manages the sewerage network and treatment plants. Both operate in a complex situation: on the one hand, they must preserve the public nature of the service; on the other, they require enormous technological and financial investment to modernise obsolete networks.

In recent years, the Tunisian government has gradually moved away from the idea of direct privatisations, favouring models of industrial cooperation, operational concessions and technological partnerships. This choice also reflects the country’s new political framework, which is highly centralised but geared towards maintaining state control over strategic assets. A whole host of international operators are active within this context. French groups maintain a long-standing presence, particularly in the water treatment and engineering consultancy sectors. Among the most active players are major firms specialising in the management of urban water networks and wastewater treatment concessions. However, Spain is the player to watch. At the same time, the influence of Spanish companies is growing; they are now regarded as among the world’s leading experts in reverse osmosis desalination. Companies such as Tedagua, Acciona, GS Inima, Cox and Almar Water Solutions are consolidating their position in the region thanks to expertise developed in Spain, the Persian Gulf and North Africa.

Among these, Tedagua is one of the most prominent operators. The company, a subsidiary of the Cobra Group, has been selected alongside the Egyptian Orascom Construction Group and the UAE-based Metito for the mega desalination plant in Sfax, one of the most impressive water infrastructure projects. The plant, funded by the Japan International Cooperation Agency, will have an initial capacity of 100,000 cubic metres per day, with scope for future expansion. Cox’s business model is also being closely monitored by regional analysts. The Spanish group, which operates on a large scale in integrated water-energy management, is promoting an approach that combines desalination, solar power and energy infrastructure. This is a particularly interesting model for North Africa, where the economic viability of such plants will increasingly depend on the ability to integrate water production with renewable energy.

Tunisia regards desalination plants as the new cornerstone of its national water security. The projects in Zarat, Djerba, Sfax and Gabès form a strategic network set to reshape the country’s landscape by 2035. In this sector, Iberian companies can boast expertise gained from major projects in the Gulf and the western Mediterranean. Asian operators are also increasing their presence. Chinese groups are particularly interested in major civil engineering works and water transfer corridors between the resource-rich north and the southern regions. Their competitiveness is based on their ability to offer integrated packages: financing, construction and technology supply. This approach has already gained a foothold in other African infrastructure sectors. In the new Tunisian landscape, significant links with Middle Eastern infrastructure capitalism are also emerging. Naguib Sawiris continues to be closely watched in North African financial circles for his long-standing ability to build industrial and infrastructure networks linking the Mediterranean, the Gulf and Africa.